Vesta Launches a Top-Up Service for O2 Ireland

Global Payments Europe will be providing card processing for Home Credit
Kazakhstan, a member of the Home Credit Group. Global Payments Europe
will provide Home Credit Kazakhstan with authorization, card management
system services and with a solution for PIN generation and PIN printing for
expansion of operations to emerging markets. Home Credit Group of the
Central & Eastern Europe consumer finance markets had granted loans of
USD 2.7 billion as of 2006.

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CMS Becomes CardWorks Servicing

CardWorks subsidiary, Cardholder Management Services, LLC (CMS) has changed its name to CardWorks Servicing. The new name more accurately reflects the Company’s position and reputation as a premier provider of turnkey services and support to bankcard issuers and acquirers in the United States and Canada. CardWorks Servicing provides customized outsourced solutions, including customer service, risk management, loss mitigation, accounting/finance support, and portfolio management that enable issuers and acquirers to successfully meet the challenges of today’s increasingly competitive bankcard environment with high-quality servicing, improved operating efficiencies and increased profit potential. CardWorks Servicing is a servicer of credit cards, national debit cards, pre-funded cards and other unique card products and is the largest privately held servicer of MasterCard and VISA cards.

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TRM Expands its Gross Margin in Q1

Portland, OR-based TRM reports first quarter net sales of $8.6 million compared to $12.5 million in 1Q/06. On a sequential basis, net sales were $8.6 million compared to $10.4 million in the fourth quarter. Net revenue performance reflects fewer transactions compared to previous quarters, mainly due to the decrease in the average number of transacting ATMs and the slight decrease in average withdrawal transactions per ATM. The average number of transacting ATMs was 10,808 during the first quarter compared to an average of 13,122 during the first quarter of 2006 and 11,511 in the fourth quarter. The Company expects the number of ATMs will continue to decrease during the remainder of 2007. However, the Company noted that approximately 562 new ATM units were added in the first quarter, which was 30% above the Company’s expectation. On July 1st TRM Corporation was awarded an ATM processing contract with Miami Airport. For more details on TRM’s latest performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Aloha Airlines Deploys Abanco’s M-Technology

Aloha Airlines has selected Abanco’s “Mobile Data Technology” for in-flight sales and inventory control. Abanco’s MDT solution will enable Aloha to increase in-flight efficiencies and customer experience on its transpacific flights by moving to a “cashless” environment through the use of credit cards while in-flight. Abanco will be supplying Aloha MDT’s patent-pending handheld units with a flight attendant friendly user interface to manage all in-flight sales. The units have robust fraud controls that enforce a tight supply chain from ground to air to ground. Additionally, MDT will provide Aloha robust tools and reports to maintain Aloha’s in-flight profit center inventory from ground to air.

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Cap One U.S. Q2 Card Profits Rise 28%

Capital One’s second quarter U.S. credit card profits increased nearly 28% year-on-year and about 9% sequentially due to revenue growth and reductions in non-interest expenses. Purchase volume in the U.S. was up 4% while U.S. managed card outstandings increased 3% from the year-ago quarter. The number of U.S. card accounts declined by about 150,000 during the quarter, and remained down from the year-on-year figure of 37.2 million accounts. U.S. card net income was $538.3 million, compared to $495.3 million in the prior quarter and $421.8 million for 2Q/06. U.S. managed card outstandings were $50.0 billion for 2Q/07 compared to $48.7 billion one-year ago and $49.7 billion in the previous quarter. Cap One says loan growth was affected by a reduction in marketing of prime customers and teaser rate offers, and a $600 million portfolio sale in the first quarter. Purchase volume hit $21.8 billion for 2Q/07, compared to $19.3 billion for 1Q/07 and $20.9 billion for 2Q/06. The managed delinquency rate (30+ days) for U.S. credit cards was 3.41% for the second quarter, compared to 3.48% for 1Q/07 and 3.30% for the second quarter of 2006. The net charge-off rate for U.S. credit cards was 3.73% for the second quarter, compared to 3.99% for the first quarter and 3.29% one-year ago. For complete details on Capital One’s second quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
2Q/06: $421.8 million
3Q/06: $461.6 million
4Q/06: $337.2 million
1Q/07: $495.3 million
2Q/07: $538.3 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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ADS Second Quarter Revenues Rise 15%

Dallas-based Alliance Data Systems posted record first quarter revenue of $563.8 million, a 15% increase over the year-ago quarter. Net income dipped 2% to $44.1 million. Transaction Services revenue decreased 2% in the quarter to $188.7 million, compared to the prior year. Credit Services revenue increased 14% in the second quarter to $201.4 million, compared to 2Q/06. Marketing Services revenue increased 26% in the quarter to $262.5 million compared to the year-ago period. During the second quarter, the Company announced that it had entered into a definitive agreement to be acquired by Blackstone and the deal should close by year-end. The Company also signed multi-year contract renewals with several long-standing sponsors including A&P Canada, Goodyear Canada and Forzani Group, Canada’s largest sporting goods retailer. The Canadian loyalty business recorded a strong quarter of double-digit organic growth through the continued expansion of the “AIR MILES Reward Program.” For complete details on ADS’ second quarter performance, visit CardData ([www.carddata.com][1]).

ADS REVENUE HISTORICAL
2Q/06: $490.5 million
3Q/06: $506.6 million
4Q/06: $524.5 million
1Q/07: $549.2 million
2Q/07: $563.8 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Danal Adds M-Business & Technology Execs

Mobile payment service provider Danal has appointed Denise Archer, previously SVP at BGCI as VP of mobile business development and David Cho, former CTO at Secos, as VP of technology. Archer will be responsible for developing strategic relationships for Danal with mobile carriers and Mobile Virtual Network Operators (MVNO) in the U.S. Cho will be responsible for all of Danal’s technology design, development, and strategy, including mobile carrier integrations, software development, and payment system management. Danal enables consumers to purchase goods and services online by charging their regular mobile phone bills.

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PayPal’s Q2 Net Revenues Jump 34%

eBay reported that PayPal had 153.1 million total accounts at the end of the second quarter, a 35% increase from one-year ago. Total payment volume rose 32% to a record $11.7 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. The number of active accounts hit 35.9 million as of June 30th, its highest level to-date. During the second quarter, PayPal handled 172.9 million payments, a 2% increase over the prior quarter, and up 21% from 2Q/06. PayPal’s 2Q/07 transaction revenue rate increased to 3.70% from 3.69% in the prior quarter. The processing expense rate for the second quarter was 1.12%, compared to 1.02% for 2Q/06. PayPal’s transaction loss rate came in at 29 basis points, up 2 basis points from one-year ago. PayPal net revenues totaled a record $454 million in the second quarter, a growth rate of 34% over the $339 million reported in one-year ago. For complete details on eBay/PayPal’s second quarter performance, visit CardData ([www.carddata.com][1]).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
2Q/06: $ 8.9 billion 113.7 million
3Q/06: $ 9.1 billion 122.5 million
4Q/06: $11.0 billion 133.0 million
1Q/07: $11.4 billion 143.3 million
2Q/07: $11.7 billion 153.1 million
SOURCE: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Diebold Sells 100,000 Opteva Machines

Diebold is celebrating the sale of its 100,000th Opteva ATM machine to MO-based Commerce Bank. The sale carries on the 20-year relationship between Diebold and Commerce. Diebold and Commerce will commemorate the event with a ribbon cutting and demonstration of the ATM’s features for the visually impaired by the National Federation of the Blind. The NFB endorses the Opteva units for meeting global accessibility guidelines and for helping to enhance the ATM experience for the visually and physically impaired. The 100,000th machine is part of an order of more than 300 Optevas purchased by Commerce, which serves customers through approximately 400 ATMs in the Midwest, primarily in Missouri, Kansas, Illinois, Oklahoma and Colorado. Installation of the ATMs is scheduled to occur in those four states throughout 2007. Commerce Bank is the principal subsidiary of Commerce Bancshares, Inc., a $15.2 billion regional bank holding company.

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Brookwood Capital Facilitates a TNB Deal

Brookwood Capital has announced that TNB Card Services has established a credit card partnership with TX-based Gulf Coast Educators FCU. Under this agreement, TNB purchased Gulf Coast’s existing credit card portfolio and will issue credit cards under the Gulf Coast Educators FCU name. Based on NCUA reporting, the existing portfolio included more than 5,000 credit card accounts and $5.6 million in receivables among Gulf Coast’s nearly 34,000 members. The credit union has approximately $250 million in assets. Brookwood Capital is an advisor to credit unions related to the credit card industry, including brokerage, consulting and advisory services to credit card issuers nationwide.

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BofA Q2 Credit Card Profits Slip 44%

Bank of America reported that its Card Services division had Q2 revenue of $6.43 billion, an increase of 2% compared to the second quarter of last year and net income declined 44% to $961 million due to higher credit costs. Managed U.S. consumer and business credit card loans at the end of the second quarter increased 4% year-on-year to $150.2 billion. Second quarter Card Services charge-offs were 5.20%, compared to 4.81% in the prior quarter and 3.55% one year ago. The managed 30+ day delinquency declined to 5.24%, compared to 5.44% in the first quarter and 4.73% for 2Q/06. BofA also reported that its merchant acquiring business handled $91.5 billion in processing volume during the second quarter from total transactions of more than 2.0 billion. Purchase volume for U.S. consumer and business cards was $61.4 billion for 2Q/07 compared to $55.5 billion for 1Q/07 and $59.8 billion for 2Q/06. For complete details on Bank of America’s 2Q/07 performance, visit CardData ([www.carddata.com][1]).

BOFA EOP CARD LOAN HISTORICAL
(U.S & International Cards)
2Q/06: $162.1 billion
3Q/06: $164.5 billion
4Q/06: $170.5 billion
1Q/07: $165.4 billion
2Q/07: $169.9 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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U.S. Merchant Systems Offers a Guarantee

Guarantee provider Assurz is partnering with U.S. Merchant Systems to offer a “100% Satisfaction Guarantee” to e-commerce retailers. If for any reason a buyer is unhappy with his or her purchase within the first 90 days after delivery, Assurz will refund the price including tax and shipping, and provide packaging materials as needed. Assurz does not charge restocking fees, and even pays the return shipping fee. Merchandise is liquidated in secondary channels to avoid competing with participating merchants. The partnership will provide first class customer service and drive sales for U.S. Merchant’s over 3000 active e-commerce merchant outlets. U.S. Merchant Systems is a Merchant Service Provider for VISA and MasterCard.

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